Future uncertain for employees at Scott Brass in Mishawaka

October 09, 2008|By JOHN PAUL WSBT-TV Reporter

MISHAWAKA Â? Another company is warning of potential layoffs and may even be closing a plant.

Scott Brass, Inc. makes brass and copper strips for a variety of products at its Mishawaka plant. In a letter to workers, the company's human resources manager said the price of copper is dropping and the company can't get the money it needs from the bank.

One day after employees received a layoff notice, cars fill the lot, the company's fleet of trucks is still there, and it's business as usual inside Scott Brass.

While employees chat over an afternoon lunch, the company's money troubles could soon leave more than 70 workers without a job.

The letter to employees stated the following:

"Due to recent and unexpected circumstances beyond the control of Scott Brass, Inc., it has been determined that significant layoffs, or even a plant closure, may become necessary in the near future.

"As you know, over the past week, there has been a precipitous drop in the price of copper, and, consequently, in the value of the Company's inventory and borrowing.

"The sudden and unexpected loss in value has resulted in uncertainties with respect to the Company's ability to obtain necessary funding from its principal financier, Wachovia Bank."

Mayor Rea confirms he received the warning notice from Scott Brass officials. He will comment when he obtains official word on what the company's next move will be.

In the meantime, Scott Brass employees say, regarding their future, they won't wait.

Â?I gotta look for a new job," one employee said. "I mean, I can't sit around and wait for them to close the doors, if that's what they are going to do."

Â?Pretty much everybody has the same feeling, the way the economy is," another said. "We've got bills to pay and stomachs to feed."

While notices have been given to affected employees, Scott Brass has not confirmed whether any layoffs have started. Management inside the plant forwarded all questions to the Rhode Island office. Our repeated phone calls to that office were not returned.

The letter to employees said the layoffs would be permanent and employees are not eligible for relocation to the company's other facility.